South Korea has announced new guidelines to officially legalize cryptocurrency trading, with complete implementation set for June 2025. The decision comes just months before the country’s presidential election, fueling speculation about the political motives behind the move.
The Financial Services Commission (FSC) approved the regulations during the 4th Virtual Asset Committee meeting in Seoul. The policy now enables registered non-profit corporations and virtual asset exchanges to handle and sell digital assets, yet requires them to follow specific regulations.
The transaction monitoring process will focus on verifying regulatory compliance for all activities.
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As part of the framework, the government will establish a Donation Review Committee to monitor all digital asset transactions involving external audit firms and non-profit organizations. The new body will examine financial documents to ensure that companies comply with rules for transparency and anti-money laundering policies.
Audit firms must demonstrate at least five years of operational experience to start crypto sales activities. The new regulations aim to enhance confidence in financial services based on cryptocurrency while establishing accountability throughout the sector.
This recent regulatory initiative prioritizes accountability rules and financial service trust within the industry.
Strict Oversight for Donations and Exchange Activities Introduced
Non-profit organizations accepting crypto donations must follow specific rules, including using robust donation management procedures and limiting contributions to assets listed on at least three Korean won-based exchanges.
These donations must be converted to fiat currency quickly, making funds readily available for beneficiaries and reducing exposure to volatility.
The FSC’s roadmap also includes revisions to its guidelines for virtual asset trading support. These updates aim to tighten operational standards and encourage responsible market practices.
Multiple analysts specializing in politics describe this timing as crucial. The upcoming June 3rd, 2025, presidential election has sparked discussions about crypto regulation between competing candidates.
Political candidates in South Korea are adopting pro-crypto positions like Trump during his presidential bid because tech-focused voters want support for digital assets.
Political campaigns demonstrate a strategic approach to regulatory changes by targeting supporters of digital assets. These legal reforms match political messaging as evidence of deliberate engagement toward expanding support for digital assets among voters.
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